When an automobile manufacturer purchases a firm that produces wiring harnesses,this is an example of

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Backward integration refers to a situation where a company acquires another company involved in the production of inputs or resources necessary for the company's operations. In this case, the automobile manufacturer is purchasing a firm that produces wiring harnesses, which are critical components in the production of automobiles. By acquiring this firm, the automobile manufacturer is integrating backward in its supply chain to gain greater control over the production of these important inputs.

When an Automobile Manufacturer Purchases a Firm That Produces Wiring